[Satellite Today 01-13-09] Open Range Communications Inc. has closed on equity financing of $100 million from One Equity Partners, the private equity arm of J.P. Morgan Chase, allowing the deployment of a wireless broadband service in rural America under a spectrum lease agreement with Globalstar, the satellite operator announced Jan. 12.
    The deal makes Globalstar the first mobile satellite services company to utilize its ancillary terrestrial component (ATC) spectrum, the company said.
    The initial lease down payment is about $2.2 million. With full use of Globalstar spectrum by Open Range, payments are expected to increase to $10.1 million in year six of the agreement.
    In March, the U.S. Department of Agriculture‘s Rural Development Utilities program approved a $267 million broadband access loan to Open Range, with the prerequisite that private financing also be secured. The investment by One Equity Partners satisfies the Rural Development Utilities program loan terms, making the funds available to Open Range.
    The U.S. Federal Communications Commission granted the necessary authority for the ATC service in October 2008.
    "The timing of our initiative couldn’t be better," Bill Beans Jr., chairman, CEO and founder of Open Range, said in a statement. "The success of this financing is a testament to the powerful opportunity offered by the promise of WiMax technology, the strength of my team and our resolve to execute on the plan for wireless broadband in rural America.”
    Additionally, Open Range has announced plans to offer dual-mode mobile satellite based and high-speed broadband Internet and voice services to more than 6 million citizens in 546 underserved and rural communities, using WiMax technology, within five years. The terminals will be satellite-capable, and customers outside of the WiMax coverage area will be able to use Globalstar service over the satellites.
    Open Range expects to deploy its infrastructure in the first group of markets later this year.